Dropbox will price IPO at $21 per share, source says

https://www.cnbc.com/2018/03/22/dropbox-will-price-ipo-at-21-per-share-source-says.html


Dropbox priced its IPO above expectations on Thursday night.
The new price values the company at over $8.2 billion.
The IPO will raise $756 million, making it the biggest tech IPO since Snap started trading last year.
Ingrid Angulo | Leslie Picker
Published 1 Hour Ago Updated 5 Mins Ago



Dropbox priced its IPO above expectations at $21 per share on Thursday night, a source told CNBC, setting the stage for the technology company's stock to hit the public market on Friday.

The company is likely to offer 36 million shares, a source said, and shares are in demand. The offering is 25-times oversubscribed, the source said.

The pricing gives the company a valuation of over $8.2 billion, lower than the $10 billion valuation it received in a 2014 private funding round. Dropbox's IPO will raise $756 million, the biggest tech IPO since Snap started trading last year.

Companies typically make an official pricing announcement before the stock begins trading.

The expected range was $18 per share to $20 per share.That estimate was up $2 a share from the company's earlier estimate of $16 per share to $18 per share.

The cloud storage company's IPO has been a highly anticipated one, despite an especially challenging week for tech stocks amid Facebook's recent data scandal. Its success could be a sign of the strength of tech "unicorns," young companies valued at more than $1 billion.

Dropbox reported more than $1 billion in 2017 revenue and 500 million registered users when its plans to go public were unsealed in February.

The company posted a net loss of $111.7 million in 2017, a narrower loss than 2016's of $210.2 million.

It competes with Box as its main cloud storage rival, as well as consumer cloud offerings from Apple, Amazon and Google. The company also considers Atlassian a competitor in the area of worker collaboration.

Dropbox will start trading on the Nasdaq on Friday with the ticker "DBX."

Dropbox was also a CNBC Disruptor 50 company five times..
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